AUD/USD Trying to Maintain Bullish Momentum

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AUD/USD Trying to Maintain Bullish Momentum

The USD gained across the board after the FOMC announced the end of QE. This pulled the AUD/USD down and prevented it from building a price bottom. However, this price bottom scenario is not over, and today’s price action might actually add to it.

The AUD/USD fell after the FOMC announcement, but found support above the 0.8750 level, which represents some common support levels in the middle of October’s range. Price is rebounding from there thus maintaining a bullish bias as it crosses above a cluster of key SMAs. The RSI also shows bullish momentum maintained despite the sharp decline yesterday. Will it be able to hold above 0.8750 and push above 0.89 towards the  next level of resistance around 0.90?

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.